Any insights on covering legal expenses for a first fund prior to closing the fund? Local VC estimates $50-60K for initial legal work all of which are recoupable from post-close admin fees. But are people just paying this out of pocket or what?
Legal fees can be an organizational expenses and paid by LPs. It can cost a lot more for legal work depending on the setup etc… You should only work with law firms that specialize in VC fund formations.